The One Big Beautiful Bill: What It Means for Your Taxes and Business
The “One Big Beautiful Bill Act,” signed into law in July 2025, brings sweeping changes to federal tax policy—impacting both individuals and businesses nationwide. Here’s what you need to know about how this major legislation could affect you, your family, and your business.
Key Tax Changes for Individuals
Lower, Permanent Income Tax Rates
The bill makes permanent the lower income tax rates and wider tax brackets first introduced in 2017, meaning most taxpayers avoid a scheduled increase and benefit from ongoing tax savings.
Bracket thresholds are adjusted upward to keep pace with inflation, reducing the risk of taxpayers “moving up” into higher brackets simply due to cost-of-living increases.
Expanded Standard Deduction & Credits
The larger standard deduction—nearly double that of pre-2017 rules—is now permanent. More taxpayers will find it easier to file and potentially pay less tax.
Child Tax Credit enhancements remain in place, delivering increased benefits for families.
Several credits and the Alternative Minimum Tax threshold are made more generous or simplified.
New Individual Tax Breaks
No federal tax on tips, overtime, or Social Security benefits (with limits)—putting more money directly in the pockets of workers and retirees.
A new, tax-advantaged savings account for all newborn Americans, designed to jumpstart financial security.
Larger estate and gift tax exemptions shield more family inheritances and small businesses from taxation—raising the threshold to $15 million per individual and $30 million for joint filers.
Additional Individual Impacts
Bigger paychecks: For many American families, take-home pay will increase, with the median four-person family projected to gain $1,700–$10,000 per year in net benefits, depending on income.
Expanded deduction for interest on Made-in-America auto loans.
Key Business Tax Changes
Small Business Deduction
The 20% small business deduction (Section 199A) is increased to 23% and made permanent. This major tax break remains for millions of pass-through entities like LLCs, S-corps, and sole proprietors, helping small businesses keep more of their profits.
Expensing & Investment
Small businesses can now fully expense business equipment purchases up to $2.5 million, doubled from the previous $1.25 million cap. This makes it cheaper and easier for businesses to invest in growth and productivity.
Immediate and permanent expensing for short-lived capital assets and research/development costs, fostering more investment in expansion and innovation.
Estate and Succession Planning
The higher estate tax exemption allows more family farms and small businesses to pass to future generations without the threat of federal estate tax.
Changes to rules for Qualified Small Business Stock (QSBS) mean growing businesses can access increased exclusions and inflation protections when raising capital or selling the company.
Other Notable Changes for Businesses
Some special credits for manufacturing, energy, and research are expanded or extended, while certain tax loopholes are closed.
Marketplace facilitators (like Amazon and Etsy) continue to have clarified responsibility for sales tax collection in certain transactions.
What Should Individuals and Business Owners Do Next?
Review your personal tax situation: Many will benefit from streamlined filing, larger deductions, and new savings or investment tools.
Small business owners: Discuss with your CPA how to take advantage of the expanded deduction and expensing caps, especially if you plan equipment upgrades or expansion.
Families and farmers: Consider how increased exemption limits might impact your estate plan and succession strategies.
At Raymond & King CPAs, we can help you understand exactly how the One Big Beautiful Bill will affect your unique situation—whether you’re running a business or planning for your family’s financial future in Michigan.
For tailored advice, reach out today so we can help you make the most of these historic changes in tax law.